What is endowment insurance Policy?
The policy that provides a good amount of money after the maturity is the Endowment Policy and it comes with some cover for the person who has taken this policy. The Endowment Assurance Policy is the one which has insurance cover to the assured and the family and has a lump sum of money for the person who is taking the policy. You can reinvest the sum when you get it at the end of the policy and get a pension amount per month and these are popular for the planning of retirement policies. You will have to pay the premium for the scheduled number of years.
Endowment insurance Policy:
There are a few features that are good for the policyholder to know. They are:
- The plan for Endowment assurance policy is as simple plan with returns guaranteed
- You will be getting sum assured and the bonus that will be accrued by the end of the term and if there is a death, then they will be paying the sum earlier
- Plan offers old age disability benefits and the future premiums are waived and they will be paying the Disability Benefits
- Higher cover through optional riders up to 3 in number
Benefits from Maturity
The benefits that you get after the policy matures are good and you can always check out the different other policies and then decide for your own how you are going to be benefitted by this policy and then reinvest in other retirement plans. The Death Benefits are a major part of the Endowment Assurance Policy. In case of the death of the Insured person, the nominee of the person receives the Assured Sum and the bonus for the term. The insured person also get the final bonus that is an addition and is payable if the premium has been paid for the 17 long years.
Tax exemption and maturity
The Maturity benefit after the maturity of the policy is also a salient feature of the policy and the insured person will get the sum insured and the accrued bonus for the period. The additional bonus is payable again for the period of 17 years. There is another benefit from the policy and that is the income tax benefit for the person who is paying the amount of the premium. The policy of the assured endowment is exempted from the tax under the section 80c and the maturities of the proceeds are exempted from the Section 10 D of the income tax.
Advantages for taking the Endowment Plan
The plan is the ideal way to make sure of your savings for the family and your family will enjoy the financial independence by the maturity and the receiving of the assured sum and the bonus. The plan also provides protection for your family and the security in case of the untimely demise of the insured person within the policy term. The plan will also give you the flexibility to customize the policy as per your needs by adding any one of the three benefits that are available.
The premium for the policy can be paid as per your choice and you can pay either annually, quarterly or half yearly as per your convenience and you can choose from the auto payment of premium option. The plan can also give you the tax benefits as per section 80C, 80D and 10 (10D) that is there in the Income Tax Act of 1961.